We have summarised the key budget highlights and an outline of the changes announced. The major revenue measures announced in the Budget included:
- increasing the tax bracket at which the 37% tax rate starts from $80,001 to $87,001, to start from 1 July 2016.
- a phased reduction in the company tax rate over 10 years.
- major SME tax changes – small business threshold to be increased to $10 million, reduced tax rates for small business.
- significant new measures directed at MNE tax avoidance e.g. a diverted profits tax, hybrid mismatch measures, strengthened transfer pricing rules, significant increase in administrative penalties.
- changes to superannuation:
- $1.6m transfer balance cap for retirement accounts
- non-concessional contributions: $500,000 lifetime cap from Budget night
- concessional contributions cap cut to $25,000 from 1 July 2017
- concessional contributions catch-up for account balances less than $500,000
- superannuation contributions tax (extra 15%) for incomes $250,001+
- transition to retirement income streams – integrity proposal.
- the Government is to impose GST on goods imported by consumers regardless of value
If you have any questions in relation to the budget and how it affects you, please do not hesitate to contact our office.